Who on here owns a franchise? Curious what kind you own and if you'd buy into it again...

i posted a thread about sears Hometown, but took down most of the info.

I've owned and run the store since jan' 15 and it's been a great time and education investment. Managing and motivating a sales and delivery team, with a great logistics system from our corporate office, combined with a 20+ year old local presence and 90+ year old original namesake carries some great goodwill. While the looming SHC uncertainty (i think bankruptcy in '18 sometime is probable) SHOS is investing some significant $$ into some great marketing to separate the differences in our 2 companies (900+ stores spun off in 2012, ~850 stores nationwide now).

If the entrepreneurial mindset becomes you, I think this platform affords you some great opportunities to provide your community a variety of different services, whether you partner or create your own delivery, handyman, Repair, services... the leads generated could be very helpful for add-on businesses.

Downside:
Amazon is either going to ruin us longterm or not. Hard to say what the future brings for retail when Amazon can just plop right down and say "okay we do this now". The question is how do you become a mini-amazon, either supplementing their brand or being the "local" amazon. I think SHOS stores offer some unique avenues to be a mini-amazon or as an acquisition for amazon as they branch into the physical storefront realm.

i'm biased as it's been good to me and mine for a few years now, and kept me interested and engaged and excited about potential. Not all locations are as successful, but we have an aging store-ownership and I think young blood is a better fit for the long term. Unfortunately every business is now a technology business, and it's hard for old people to change habits.

Scattered thoughts, apologies. Good luck in your future pursuits.

I seriously was looking at franchises about 8 years ago in Arizona. I almost went with mail box etc about a year before their deal with UPS.

But one thing I learned was UPS routes can be franchises. That really intregef me.

UPS does Not franchise routes

You are thinking of FedEx

MookieBlaylock said:

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UPS does Not franchise routes

You are thinking of FedEx

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Mookie -

I don't know the semantics differences for franchise "stores" and "routes" and 'territories" regarding UPS, maybe you can explain this one.

I personally went to UPS locations in MN, ND, SD and WI to try and ship firearms. These UPS locations I visited would not accept firearms for shipment. The exact wording was, "Our franchise owner does not allow firearms shipments through their franchise locations. However, you can ship firearms through UPS, but you have to execute the shipment transaction at our Hub."

I took this statement to mean UPS has individual franchises.

So I guess maybe there's a difference between my example and your "franchise route" comment. I am thinking you are focusing on a distribution/route footprint in a geography where I am discussing a bricks & mortar location, yes/no?

The UPS Store is a franchise. it's a separate thing from delivery services of UPS itself.

Got it. Thanks. That's what I thought. Appreciate the confirmation.

diehard03 said:

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The UPS Store is a franchise. it's a separate thing from delivery services of UPS itself.

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Yeah, "The UPS Store" is something completely different than UPS. They accept Fedex, USPS, etc. shipments as well as doing faxing, copying, etc.. It is basically just a mailing store that they have added that name to.

I'm speaking of actual driver routes. You can be a truck owner with your own territory. And eventually grow it to multiple trucks and territories.

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I'm speaking of actual driver routes. You can be a truck owner with your own territory. And eventually grow it to multiple trucks and territories.

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I don't think so. Sure, they may structure it as independent contractors so they can scale up and down quickly (but I don't believe they do)...but UPS dictates your routes, tracks everything for efficiency, etc. It's not like a independent shipping line or anything.

Anyone familiar with franchising "Discount Tire"?

_lefraud_ said:

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Anyone familiar with franchising "Discount Tire"?

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they don't

Entrepreneur magazine does an annual "Franchise 500" list.

https://www.entrepreneur.com/franchise500/2018

I owned a franchise of a cleaning service company as a side business in the very early 2000s. It was one of their recommended "Low Investment" franchises and that started me off on my research process.

Here's my take on franchises:

You won't get rich. McDonalds is and has been the #1 franchise on their list, but you must be worth $1M+ to buy one. So, you were pretty well off to begin with, and it may make you "more well off" but not turn your life into something it wasn't. I'm thinking it's the same all the way down the line. In a lot of cases, buying a franchise is like "buying a job". In my specific experience, the franchise fees were almost magically enough that I made money, but they made just about the same off of me. And theirs was off the top, mine was not so guaranteed. The franchisor (or the middle man, the "Master Franchisee" who controls a region or a number of plain-old franchisees) is not necessarily your friend. They make their money off of your work, and the pie size is fixed, so what they make means less for you. They are there to "help you succeed" but not at their own expense. If you just scrape by, they're fine as long as you continue to operate. If you fail, they still have your buy-in price and they can sell your store/route/accounts to someone in their system already or to a newb.

Bottom line, i closed my business because of shenanigans the master franchisee pulled (got in a legal dispute wiht the national franchise, tried to break away, changed our name, etc.) AND because I was making money but i did not see it as ever likely to grow into anything beyond a side gig (i.e. it woudl never replace/supplant/exceed my main income.) One of the best days of my life to date is the day I "disconnected" my business from my cell number. Never again would i have a late-night or early-morning call from an upset customer or an employee calling in sick.

I think I could run a cleaning service business on my own now, knowing what I learned, and make a decent amount of money (since I'd keep all the profits). I could do myself or hire out (for less) the services the company provided, such as telephone marketing, job bidding, technical support, etc. But, usually you sign a non-compete when you buy a franchise, so learning the ropes hoping to go independent is not a good reason to go into one.

I would definitely jump at the chance to own a Chik-fil-a. Hell, I'd crawl across broken glass to get one. But buying a franchise in most systems is a pretty reliable path to mediocre earnings, IMHO.

how in the heck in Schlotzky's in the Top 50 of that list?

Maybe it's doing better outside of Texas but it seems to circling the drain in its home state.

Also, knowing the franchise selling business certainly helps. #7 & #38 of the $500+ franchises were started by the same family. Both pretty mediocre but apparently quite successful.

HustlerAggie said:

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diehard03 said:

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The UPS Store is a franchise. it's a separate thing from delivery services of UPS itself.

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Yeah, "The UPS Store" is something completely different than UPS. They accept Fedex, USPS, etc. shipments as well as doing faxing, copying, etc.. It is basically just a mailing store that they have added that name to.

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They typically do not accept/service FedEx.

Diggity said:

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how in the heck in Schlotzky's in the Top 50 of that list?

Maybe it's doing better outside of Texas but it seems to circling the drain in its home state.

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We had a second one pop-up about 3 miles from another - both look like ghost towns whenever I drive by. Which is just what Schlotzky's looked like 10-12 years ago when we it was a place close to work for us to grab lunch.

It's baffling.

hey, not vouching for their list! i wouldn't say they led me astray, but the franchise i picked was highly rated by them at the time...

Didn't schlotzkys' have an open franchisee rebellion a few years back?

ha...I know. I just quoted you because you had the list

Agnzona said:

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Didn't schlotzkys' have an open franchisee rebellion a few years back?

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Don't know about that, but Subway definitely had a negative franchisor/franchisee relationship a while back. They'd sell a franchise and then sell another one right across the street (practically) and their "national specials" forced the franchisees to cut to the bone, especially in high-cost areas. Can you imagine trying to make a profit on a 5-dollar footlong in San Fran or DC?

Buy some dollar stores ASAFP

JSKolache said:

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Buy some dollar stores ASAFP

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Dollar General

free_mhayden said:

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HustlerAggie said:

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diehard03 said:

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The UPS Store is a franchise. it's a separate thing from delivery services of UPS itself.

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Yeah, "The UPS Store" is something completely different than UPS. They accept Fedex, USPS, etc. shipments as well as doing faxing, copying, etc.. It is basically just a mailing store that they have added that name to.

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They typically do not accept/service FedEx.

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I rent a box at one, and they have FedEx deliveries and pickups once a day.

Any other franchisees out there that can share their experience?

Agnzona said:

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I'm speaking of actual driver routes. You can be a truck owner with your own territory. And eventually grow it to multiple trucks and territories.

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I'm still thinking that you are mixing up UPS with Fedex. I worked at UPS and the employees were all part of the Teamsters union. Routes were determined by seniority only and it would take almost 7 years to get your own route. The amount of time spent as a cover driver varies by distribution center.

Even the tractor trailer drivers were determined by seniority. It would take almost 15 years to get one of those spots. Things could have changed at some locations since I left, but I find it hard to believe that the teamsters would sign a deal that would allow the franchising of routes and territories.

The UPS stores are franchises that you can buy into, but not the routes.

HustlerAggie said:

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free_mhayden said:

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HustlerAggie said:

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diehard03 said:

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The UPS Store is a franchise. it's a separate thing from delivery services of UPS itself.

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Yeah, "The UPS Store" is something completely different than UPS. They accept Fedex, USPS, etc. shipments as well as doing faxing, copying, etc.. It is basically just a mailing store that they have added that name to.

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They typically do not accept/service FedEx.

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I rent a box at one, and they have FedEx deliveries and pickups once a day.

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They all accept FedEx deliveries.

As for pickups, it sounds like it must be up to the owner -- I have a few and they'll take all my USPS but not my FedEx.

A buddy of mine owned a Quiznos and went bankrupt.

Friend of mine had some DQs that did well. But they did have A LOT of them.

free_mhayden
In reply to HustlerAggie 3:36p, 2/5/18

free_mhayden said:

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They typically do not accept/service FedEx.

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free_mhayden
In reply to HustlerAggie 9:13a, 2/8/18

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They all accept FedEx deliveries.

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Quote:

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I would definitely jump at the chance to own a Chik-fil-a. Hell, I'd crawl across broken glass to get one.

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Isn't a Chik-fil-A the quintessential "buying a job"?

Piercing Mae said:

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A buddy of mine owned a Quiznos and went bankrupt.

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This isn't an indictment of your friend, but per my dad and father who are both in retail real estate, their franchise qualification criteria basically consisted of your ability to fog a mirror. With that, you ended up with a lot of poorly run, under-capitalized stores.

What he is saying is right.

They accept FedEx to be delivered there (people have mailboxes there), but normally you can't drop off FedEx shipments to be sent there.

Schlotzskys got to be the same way. Some of the franchise locations were just gross.

Cool. I guess the differing uses of the word "accept" confused me.

Yeah I went back and read it and I wasn't very clear.